Rathbone Brothers Plc : Trading Statement

January 12, 2017 --

Rathbone Brothers Plc

Trading Update and Notice of Results

Rathbone Brothers Plc ("the Company") announces a trading update for the three months ended 31 December 2016. Trading in the period was robust, reflecting a rally in investment markets and positive transaction volumes.

Total funds under management at 31 December 2016 were £34.2 billion, up 17.1% from £29.2 billion at 31 December 2015.

Funds under management in Investment Management were £30.2 billion at 31 December 2016, up 15.7% from £26.1 billion at 31 December 2015. The FTSE 100 Index increased 14.4% and the FTSE WMA Balanced Index increased 13.6% over the same period.

Total net inflows in Investment Management for the fourth quarter were £292 million (Q4 2015: £368 million). The total for the year was £1.2 billion (2015: £1.4 billion).

The underlying rate of net organic growth in funds under management in Investment Management for the three months ended 31 December 2016 was 2.9% (2015: 3.7%) and 2.9% for the year ended 31 December 2016 (2015: 3.0%).

Funds managed by Unit Trusts were £4.0 billion at 31 December 2016, up 29.0% from £3.1 billion at 31 December 2015. Total net fund inflows totalled £125 million in the fourth quarter of 2016 (Q4 2015: £165 million) and were £554 million for the full year (2015: £371 million).

Outlook

Despite the market rally in the last quarter of 2016, political and economic uncertainty could particularly impact investment markets in 2017. We expect to pursue planned growth initiatives in the coming year and continue to prioritise expenditure that enhances our client service and upgrades our infrastructure. We retain an appetite for acquisitions that fit our culture and look forward with cautious optimism.

Notice of ResultsThe Company will issue its preliminary statement of annual results for the year ended 31 December 2016 on Thursday 23 February 2017.

Funds under management

3 months ended 31 December

Year ended 31 December

2016

2015

2016

2015

£m

£m

£m

£m

(i) Investment Management

Opening FUM (1 October / 1 January)

29,300

24,842

26,126

24,672

Net inflows

292

368

1,184

1,414

Organic new business

215

227

747

739

Acquired new business

77

141

437

675

Market adjustment

592

916

2,874

40

Closing FUM (31 December) 1

30,184

26,126

30,184

26,126

Underlying annualised rate of net organic growth

2.9%

3.7%

2.9%

3.0%

Annualised rate of net inflows

4.0%

6.0%

4.5%

5.7%

(ii) Unit Trusts

Opening FUM (1 October / 1 January)

3,862

2,764

3,073

2,521

Net inflows

125

165

554

371

Market adjustment

64

144

424

181

Closing FUM (31 December)

4,051

3,073

4,051

3,073

Total FUM (31 December)1

34,235

29,199

34,235

29,199

¹ Includes £937 million (31 December 2015: £923 million) of funds under execution only mandates

Rathbone Brothers Plc ("Rathbones"), through its subsidiaries, is a leading provider of high-quality, personalised investment and wealth management services for private clients, charities and trustees. This includes discretionary investment management, unit trusts, tax planning, trust and company management, pension advice and banking services.

Rathbones has over 1,100 staff in 16 locations across the UK and Jersey, and currently has its headquarters in Curzon Street, London.